PrisonPlanet Forum
July 28, 2014, 10:37:17 PM *
Welcome, Guest. Please login or register.

Login with username, password and session length
 
   Home   Help Login Register  
Pages: [1] 2 3 4 5 6   Go Down
  Print  
Author Topic: Welcome to the Machine: MERS and The Shadow Banking System  (Read 47337 times)
Dig
All eyes are opened, or opening, to the rights of man.
Member
*****
Offline Offline

Posts: 63,099



WWW
« on: October 20, 2010, 02:41:38 AM »

Welcome to the Machine

A Workingman's Guide to MERS and the Shadow Banking System

http://chinkinthearmor.net/MERS_Short_List_MLIM.html

A story is breaking upon the nation as I write this.  It is a story I have been forced to live for the last year and a half.  In that year and a half I have come to learn a lot of confusing truths about the way the money in this world really works.   The mainstream media is talking more and more about the foreclosure scandal and at the heart of it all is MERS.   Mortgage Electronic Registry Service.  It’s the biggest littlest company you have never heard of before and in the thirteen years of its existence,   it has utterly destroyed the real property ownership records system in every county in the United States.

The purpose of The Working Joe’s Guide to MERS & Mortgage Banking is to provide the every day average Joe & Joie the information they need to understand this tremendous scandal unfolding ahead.   More importantly,  use this information to arm yourself with truth so you can cry BULLSHITTE when the talking heads try to spin the story for you.  And they will. 

Be warned.  The story has so many facets that to sit down and take it from one end to the other leaves one a bit befuddled.  Smoke comes out of your ears,  if you know what I mean.  Thinking and operating in the world of MERS is a testament to the infinite adaptability of the human condition.  I recall when I first came to the realization of the Meaning of MERS and the smoke started to pour from my ears.  It was late at night and I had been researching what had happened to me about a week earlier. 

I had just invoked the “Produce the Note” defense in court and had won a stay on the sale in the foreclosure of my house.  After the euphoria wore off,  I really started to wonder what had just happened.  I was geeking out trying to understand.  It was late at night.   I had been finding and reading court cases for about a week,  the lights were out except for the screen,  the kids were all asleep,  and I sat bolt upright in my chair when the realization struck.  “My God,  they can’t deliver clear title~!”  I blinked into the darkness for about five minutes as the full impact of that washed over me.  That was almost a year ago and I have managed to withstand the MERS monster’s siege upon my castle since then (not to worry,  still plenty of food & water). 

Living and thinking in a MERS world is common for me now.   Newcomers look at their surroundings as if it were their first foray into Toon Town,  the refuge of Roger Rabbit when he was running from the law.    I’ve been here for a while and I’m used to it.   ‘Oh,  yeah,’  I tell them,  ‘that happens all the time. ‘

In order to really get into what is going on,  you have to pile through a lot of boring mundane stuff.  PJ O’Rourke calls it ‘Dictatorship by Tedium’.   Any time regular people try to figure out what’s going on they feel like they are back in High School Algebra class and not having a clue as to what is going on.  That’s how “they” get away with it.  It’s not that you can’t understand.  You can.  It’s that they make it so boring,  you don’t want to.  In today’s specialized world,  to a certain extent,  you have to trust that “they” who are “the experts” are as well studied in their subject matter as you are in yours.  Leave all that to people who are interested.

This is a complicated story.  It is actually six stories interwoven into a larger narrative.  Part of the problem is it is so easy to get caught up with one or two pieces of the story and miss the real story.  It goes deeply into the arcane runes of the financial world.  To tell it in detail would leave you glassy eyed and wondering what you were doing for lunch.  So I leave a lot of details out and as a result,  it may seem overly simple.   That’s because it is.  But it’s not.

This is a quick tour so you can understand the big picture.  You will,  no doubt,  find various aspects of it curious and you will want to go back to explore more.  All the subjects in here are available for further study through the internet.  That’s what I did.  This whole story is pulled together from late night google searches.   

In order to make this easy,  let’s start out with the shockers.

•    If you have MERS on your mortgage,  unless you take action to quiet title,  you will NEVER see clear title to your house. 

•    If MERS is on the title history of a house you are thinking about buying,  you need to know there is an immense cloud on that title and you will never own what you think you are buying.

•    If your mortgage is securitized,  meaning it was used as part of a securitization vehicle,  you are paying rent to the Shadow Banking System (SBS) no part of which has an enforceable encumbrance upon your house.

•    And finally,  if you have MERS on your mortgage,  and there are over 62 MM of us,  your house has become the gold coin of the shadow banking system.

I’ll say that last one again because it really needs to soak in.

Your house is the gold coin of the Shadow Banking System. (SBS)

It’s very complicated,  but it’s very simple.  Let me tell you what was really going on in the entire mortgage banking collapse of 2007 -  Huh

Factoring is a time honoured business practice.  Wikipedia defines factoring as a financial transaction whereby a business sells its accounts receivable (i.e., invoices) to a third party (called a factor) at a discount in exchange for immediate money with which to finance continued business.

In this case,  the mortgage originators (the banks who originated the loan) were factoring their paper to the SBS so they could make more loans so they could factor more paper all to feed the insatiable appetite of the SBS for the security of their periodic,  temporary,  large cash positions as well as to give pension funds,  sovereign wealth funds, and money market funds a place where they could receive “an above average return with little to no risk”.

All of it,  the entire scandal destroying the world today boils down to one word.

Factoring.

Welcome to the Rabbit Hole.
Logged

All eyes are opened, or opening, to the rights of man. The general spread of the light of science has already laid open to every view the palpable truth, that the mass of mankind has not been born with saddles on their backs, nor a favored few booted and spurred, ready to ride them legitimately
citizenx
Member
*****
Offline Offline

Posts: 9,086


« Reply #1 on: October 20, 2010, 04:19:24 PM »

Wednesday, October 20, 2010

Pimco, New York Fed, part of a consortium of eight Suing Bank of America, Demanding they buy BACK their Mortgage Securities! BUT I have Figured Out - FORECLOSURE is the ONLY Way the Banks Can Cover their Tracks, of their Underwriting FRAUD!

 
All that wrangling done by the Fed and Treasury in 2008, making One Bank take on another bank's liabilities and business, is now coming to roost.  They tried covering up various illegal practices by having mergers of failing firms.  Bank of America took on Country Wide Mortgage during that time, both being MERS Corp Banks.  So Bank of America got double to triple their exposure to the mortgage Service Foreclosure Fraud of MERS by taking them on.

With all the Mortgage Foreclosure Fraud now coming out, with investors of mortgage securities now DEMANDING their investments BACK from the banks due to the fraud of the underwriting and the foreclosure Fraud!  Remember the Fraud STARTS at the Underwriting and continues from there - that is why there are "paper irregularities"!  The banks may keep foreclosing on people, but at some point it will have to STOP, when enough Judges Rule AGAINST their Right to Foreclose!

I find it very interesting the New York Fed is involved in suing Bank of America for their investments.  When I became aware of the FRAUD about 2 years ago, and researched it, I figured the government and the Fed would not allow the full extent of fraud to come out, due to them having so much exposure of the fraud!

So, it seems to me with the New York Fed joining in on the suit, they may not be able to Stop it after all!  Especially with the whistleblowers coming out, saying each mortgage security was sold about 20 times - not just once!  The banks have Trillions from one property being sold multiple times, thus they Need to Foreclose for the Write Offs and then they don't have to Pay the investors on their investment - because they would have to Pay 20 funds off!

continued:

http://sherriequestioningall.blogspot.com/2010/10/pimco-new-york-fed-part-of-consortium.html

Logged
gEEk squad
Member
*****
Offline Offline

Posts: 2,000


You're World Delivered... to the NSA


« Reply #2 on: October 20, 2010, 09:09:07 PM »

Here is a very good comment on the blog citizenx posted:

This was clear back in 2008 when Congress claimed that TARP money was intended to help with the mortgage bubble but then rabidly refused to allow any of the money to be used by the courts to restructure the bad loans. It was crystal clear at that moment that keeping people in their homes was NOT the goal, keeping the debt servicing going and hidden was.. Add to that the federal programs that are SUPPOSED to keep people in their homes are failing because they are designed to fail. The Sub-Prime mortgages were written to to create the "products" for
the CDO market, NOT to grow the housing industry.

Banks weren't making money on the mortgages they were making money on selling and re-selling the CDOs secured by the mortgages. The MERS system was created to hide the ownership of the mortgages and hide the fact that they were being sold to multiple "investors." That's why nobody knows what the true obligation is because nobody knows how many investors own the same note. The only way to find out is stop payment and see who comes forward. Thats why the banks are called "to big to fail" and are being bailed out. Bankrupcy would reveal the fraud. UBS, the German bank stepped forward in 2008 and were quickly and quietly bought off, almost certainly with TARP money.

That's why the FED audit bill was "disappeared: so quickly, it would have exposed the fraud back then. When the debt was so great it could no longer be serviced and the market collapsed the banks needed a way to cover up the fraud. They had to keep the money following. First it was TARP and now that's running out so they need to get the loans performing again, THAT'S why the rush to foreclosure. Look for Obama to prove he is an accessory to this massive fraud by pushing HR-3808 right after the election. This is perhaps the greatest fraud in history and it is being protected by the US government itself.
They will continue to put band-aids on this festering sore until it finally explodes.
Logged
citizenx
Member
*****
Offline Offline

Posts: 9,086


« Reply #3 on: October 21, 2010, 07:34:14 PM »

Tuesday, October 19, 2010
Guest Post: Mortgages Were Pledged to Multiple Buyers at the Same Time

 
By George Washington

Bank of America alleged in a court filing this June:

It appears as though many loans and other mortgage-related assets have been double and even triple-pledged to various constituencies

.

Boa Answer to Freddie Objection in Re Taylor Bean & Whitaker Mortgage Corp.


April Charney – a consumer lawyer with Jacksonville Area Legal Aid – and CNBC’s Dennis Kneale noted in February 2009 that courts have found that some mortgages have been sold again and again to different trusts, when they should have only been sold once.

Kneale explained that that is the reason that two different banks sometimes try to simultaneously foreclose on the same home:



And today, Chris Whalen told CNBC’s Larry Kudlow that Bear Stearns will be exposed as having sold the same loan to different investors on numerous occasions (see 6:45 into video):



As I have repeatedly pointed out, the failure of the mortgage originators and banks to prepare and record proper documentation has led to an epidemic of fraud. The pledging of the same mortgage again and again to different trusts related to mortgage backed securities is just one result.

And as long-time foreclosure investigator Nye Lavalle writes:

On thousands of occasions I stated to regulators, CEOS, banks, Fannie and Freddie that the practices of the banks were that they were double and multi-pledging assets and pledging paid off and refinance notes to securitizations. This is something April, Max [Gardner] and I have discussed for years now. Now, they come and admit that each of my allegations were true. Without analyzing the deal, as complex as they are, you WILL NEVER KNOW IF THE FORECLOSING PARTY HAS “ANY” RIGHT TO FORECLOSE!!!

for whole article with embedded video links and Scribd document:

http://www.nakedcapitalism.com/2010/10/guest-post-mortgages-were-pledged-to-multiple-buyers-at-the-same-time.html
Logged
citizenx
Member
*****
Offline Offline

Posts: 9,086


« Reply #4 on: October 21, 2010, 07:38:00 PM »

Foreclosuregate Fallout: How Bad Can It Get For Wall Street?

Posted by Zach Carter on @ 12:36 pm
Article printed from speakeasy: http://blogs.alternet.org/speakeasy
URL to article: http://blogs.alternet.org/speakeasy/2010/10/20/foreclosuregate-fallout-how-bad-can-it-get-for-wall-street/


Foreclosure fraud is ruffling a lot of feathers on Wall Street, and while the full scope of losses remains unclear, even major banks are now acknowledging that this is a multi-billion-dollar disaster, not just a set of minor paperwork headaches.

So how bad will it get for Wall Street? There are several disaster scenarios in which the housing market simply shuts down, where the potential losses for Wall Street are simply incalculable. But even situations that do not directly rip apart the basic functioning of the mortgage system could be enough to shut down one or more big banks, creating serious trouble for the financial system, and a major test of the recent Wall Street reform bill.

JPMorgan Chase loves using its research department to push its political agenda, and the bank is currently characterizing the foreclosure fraud outbreak as a set of “process-oriented problems that can be fixed.” That puts them in the rosy optimist camp for this crisis, and they’re projecting a total of $55 billion to $120 billion in losses for the entire industry, spread out over a few years.

But take a look at the analysts’ methodology. The actual scope of losses gets drastically larger if you just change a few arbitrary assumptions.

continued -- see above URL/link
Logged
citizenx
Member
*****
Offline Offline

Posts: 9,086


« Reply #5 on: October 21, 2010, 07:48:01 PM »

When Banks Are the Robbers
By Amy Goodman

October 20, 2010 "TruthDig" -- The big banks that caused the collapse of the global finance market, and received tens of billions of dollars in taxpayer-funded bailouts, have likely been engaging in wholesale fraud against homeowners and the courts. But in a promising development this week, attorneys general from all 50 states announced a bipartisan joint investigation into foreclosure fraud.

Bank of America, JPMorgan Chase, GMAC and other big mortgage lenders recently suspended most foreclosure proceedings, following revelations that thousands of their foreclosures were being conducted like “foreclosure mills,” with tens of thousands of legal documents signed by low-level staffers with little or no knowledge of what they were signing.

Then the Obama administration signaled that it was not supporting a foreclosure moratorium. Not long after, Bank of America announced it was restarting its foreclosure operations. GMAC followed suit, and others will likely join in. So much for the voluntary moratorium.

GMAC Mortgage engaged in mass document processing, dubbed “robo-signing.” In several cases, GMAC Mortgage filed documents with courts that were signed by Jeffrey Stephan. Stephan presided over a staff of 12 in suburban Philadelphia. Ohio Attorney General Richard Cordray filed a lawsuit against GMAC Mortgage, Stephan and the bank that owns GMAC, Ally Financial (itself a subsidiary of General Motors).

According to one report, Stephan received 10,000 mortgage foreclosure documents to process in one month. Based on an eight-hour workday, he would have had to read, verify and sign, in the presence of a notary, about one document per minute. He admitted to signing documents without reading them or checking the facts about homeowners said to be in default. And Stephan was just one of many “robo-signers.”

Recall that GM received $51 billion in taxpayer bailouts; its subsidiary, GMAC, received $16.3 billion; and Ally Financial subsidiary GMAC Mortgage received $1.5 billion as an “incentive payment for home loan modification.”

source:

http://www.informationclearinghouse.info/article26641.htm


------------------------------------------------------------------------------------------------
When Banks Are the Robbers

Tags: CORPORATE MEDIA COVER-UP/DECEPTIONS/PROPAGANDA ECONOMY
The big banks that caused the collapse of the global finance market, and received tens of billions of dollars in taxpayer-funded bailouts, have likely been engaging in wholesale fraud against homeowners and the courts. But in a promising development this week, attorneys general from all 50 states announced a bipartisan joint investigation into foreclosure fraud.

Bank of America, JPMorgan Chase, GMAC and other big mortgage lenders recently suspended most foreclosure proceedings, following revelations that thousands of their foreclosures were being conducted like “foreclosure mills,” with tens of thousands of legal documents signed by low-level staffers with little or no knowledge of what they were signing.

Webmaster's Commentary:
Again, you need to be careful of these stories that portray the gang-rape of Americans by the bankers as purely a foreclosure fraud issue. It isn't. The heart of the crime is that the mortgages backing the mortgage-backed securities were resold over and over, as many as 20 times, reaping billions in instant profits. But there is no way the sellers of those mortgage-backed securities could make good on the over-subscription, so the only way for the scheme to work is for the housing market to be crashed, and all those mortgages foreclosed as quickly as possible to erase the paper trail that could land the fraudsters in jail!

http://whatreallyhappened.com
---------------------------------------------------------------------------------------------------

Mike Rivero has it right.

Amy Goodman anbd the Ford Foundation/CIA are trying to get ma and pa America all p.o.'s about the Foreclosure disaster so they won't pay attention to the massive fraud/ponzi sceme of the banks selling the same mortage to each other about a gazillion time -- the big banks have been engaging in massive fraud and the way they can cover it up is by foreclosing as quickly as possible on the delinquent properties.

The real story are the fraudulent collateralized securities the banks were issuing.

This tends to get drowned out in the MSM.
------------------------------------------------------------------------------------------------------

Now that I have seen through the b.s. the alternative left (CIA "foundations") are putting out, it disgusts me even more than the b.s. pumped out wholesale by the MSM!
Logged
Dig
All eyes are opened, or opening, to the rights of man.
Member
*****
Offline Offline

Posts: 63,099



WWW
« Reply #6 on: October 21, 2010, 08:01:56 PM »

When Banks Are the Robbers
By Amy Goodman

October 20, 2010 "TruthDig" -- The big banks that caused the collapse of the global finance market, and received tens of billions of dollars in taxpayer-funded bailouts, have likely been engaging in wholesale fraud against homeowners and the courts. But in a promising development this week, attorneys general from all 50 states announced a bipartisan joint investigation into foreclosure fraud.

Bank of America, JPMorgan Chase, GMAC and other big mortgage lenders recently suspended most foreclosure proceedings, following revelations that thousands of their foreclosures were being conducted like “foreclosure mills,” with tens of thousands of legal documents signed by low-level staffers with little or no knowledge of what they were signing.

Then the Obama administration signaled that it was not supporting a foreclosure moratorium. Not long after, Bank of America announced it was restarting its foreclosure operations. GMAC followed suit, and others will likely join in. So much for the voluntary moratorium.

GMAC Mortgage engaged in mass document processing, dubbed “robo-signing.” In several cases, GMAC Mortgage filed documents with courts that were signed by Jeffrey Stephan. Stephan presided over a staff of 12 in suburban Philadelphia. Ohio Attorney General Richard Cordray filed a lawsuit against GMAC Mortgage, Stephan and the bank that owns GMAC, Ally Financial (itself a subsidiary of General Motors).

According to one report, Stephan received 10,000 mortgage foreclosure documents to process in one month. Based on an eight-hour workday, he would have had to read, verify and sign, in the presence of a notary, about one document per minute. He admitted to signing documents without reading them or checking the facts about homeowners said to be in default. And Stephan was just one of many “robo-signers.”

Recall that GM received $51 billion in taxpayer bailouts; its subsidiary, GMAC, received $16.3 billion; and Ally Financial subsidiary GMAC Mortgage received $1.5 billion as an “incentive payment for home loan modification.”

source:

http://www.informationclearinghouse.info/article26641.htm


------------------------------------------------------------------------------------------------
When Banks Are the Robbers

Tags: CORPORATE MEDIA COVER-UP/DECEPTIONS/PROPAGANDA ECONOMY
The big banks that caused the collapse of the global finance market, and received tens of billions of dollars in taxpayer-funded bailouts, have likely been engaging in wholesale fraud against homeowners and the courts. But in a promising development this week, attorneys general from all 50 states announced a bipartisan joint investigation into foreclosure fraud.

Bank of America, JPMorgan Chase, GMAC and other big mortgage lenders recently suspended most foreclosure proceedings, following revelations that thousands of their foreclosures were being conducted like “foreclosure mills,” with tens of thousands of legal documents signed by low-level staffers with little or no knowledge of what they were signing.

Webmaster's Commentary:
Again, you need to be careful of these stories that portray the gang-rape of Americans by the bankers as purely a foreclosure fraud issue. It isn't. The heart of the crime is that the mortgages backing the mortgage-backed securities were resold over and over, as many as 20 times, reaping billions in instant profits. But there is no way the sellers of those mortgage-backed securities could make good on the over-subscription, so the only way for the scheme to work is for the housing market to be crashed, and all those mortgages foreclosed as quickly as possible to erase the paper trail that could land the fraudsters in jail!

http://whatreallyhappened.com
---------------------------------------------------------------------------------------------------

Mike Rivero has it right.

Amy Goodman anbd the Ford Foundation/CIA are trying to get ma and pa America all p.o.'s about the Foreclosure disaster so they won't pay attention to the massive fraud/ponzi sceme of the banks selling the same mortage to each other about a gazillion time -- the big banks have been engaging in massive fraud and the way they can cover it up is by foreclosing as quickly as possible on the delinquent properties.

The real story are the fraudulent collateralized securities the banks were issuing.

This tends to get drowned out in the MSM.
------------------------------------------------------------------------------------------------------

Now that I have seen through the b.s. the alternative left (CIA "foundations") are putting out, it disgusts me even more than the b.s. pumped out wholesale by the MSM!

100% correct!

These Billion here and Billion there ain't shit when compared to the $27.3 Trillion that the Fed stole in one year!
Logged

All eyes are opened, or opening, to the rights of man. The general spread of the light of science has already laid open to every view the palpable truth, that the mass of mankind has not been born with saddles on their backs, nor a favored few booted and spurred, ready to ride them legitimately
citizenx
Member
*****
Offline Offline

Posts: 9,086


« Reply #7 on: October 21, 2010, 10:27:53 PM »

Right, as their Ponzi schemes collapsed last time -- who was recruited (raped) to pay to bill?  All of us.

Same with the collateralized securities that are still in the process of collapse -- begging another huge intervention -- if we let them get away with it again!
-----------------------------------------------------------------------------------------------------------

In that vein:


Thursday, October 21, 2010
Two Front Crisis Of Foreclosure Fraud for Banks - Fraud Committed by Foreclosing on Homeowner Illegally AND Most Investors of Mortgage Securities are DEMANDING Their Money BACK! Looks Like Banks are Getting it From ALL Sides! AAhhh....... Don't cha Just Feel Sorry for Wall Street, Right now As The Walls Come Tumbling DOWN!
 


Bloomberg has an article saying the Wall Streets Banks are Getting it From all Sides!  First the Fraudulent Paperwork of Illegally Foreclosing on Homeowners!  BUT, NOW the BIG story is becoming ALL THE INVESTORS WANTING THEIR MONEY BACK - OUT OF MORTGAGE SECURITIES!  Already Billions Are being Demanded Back from Investors!

Seems to me, we have a situation that can Cause the Walls of Wall Street to come tumbling Down Very Fast!

They are getting Hit from all sides!  Oh..... lets all say together...... aaaahhhhhhh.... Poor Wall Street, don't cha just feel so sorry for them right now, as they are handing out the biggest bonuses ever in the history of Wall Street! (they know the end game is here? getting all they can, out, fast?)

Portion:


Shoddy mortgage lending has led bankers into a two-front war, pitting them against U.S. homeowners challenging the right to foreclose and mortgage-bond investors demanding refunds that could approach $200 billion.


While federal regulators and state attorneys general have focused on flawed foreclosures, a bigger threat may be the cost to buy back faulty loans that banks bundled into securities. JPMorgan Chase & Co., Bank of America Corp., Wells Fargo & Co. and Citigroup Inc. have set aside just $10 billion in reserves to cover future buybacks. Bank of America alone said this week that pending claims jumped 71 percent from a year ago to $12.9 billion of loans.


The biggest risks for banks may be loans packaged into mortgage-backed securities during the housing bubble, of which $1.3 trillion remain. The aggrieved bondholders include government-controlled firms Fannie Mae and Freddie Mac, bond insurers and private investors.

link:

http://sherriequestioningall.blogspot.com/2010/10/two-front-crisis-of-foreclosure-fraud.html
--------------------------------------------------------------------------------------------------

On a side not our budget deficit for the year is estimated to be 1.3 trillion, so if we have to foot right no the bill we are talking about doubling that right now.

To give it some scale perspective.

To put it another way, 1.3 trillion USD divided by 300 million Americans is 4,333.33$ for every man woman and child in the U.S. of A.

That should make it real clear for everyone what we are talking about.

(In addition to the tens of trillions already stolen.)
Logged
citizenx
Member
*****
Offline Offline

Posts: 9,086


« Reply #8 on: October 22, 2010, 03:25:27 AM »

One trillion of that 1.3 may be to bail out Fannie and Freddie (again).



The Daily Bail
National Debt & Deficit Portal. Bailout News. QE - The New American Bloodsport.

THE FED UNDER FIRE: Must See Clip

Oct222010
« UPDATE: Fannie, Freddie bailout could double in size to $360 Billion -- It Will Eventually Be $1 Trillion »
Yes, Barney is guilty.  And so are the banks who packaged shit into shinola.  We heard from another one of the guilty parties earlier this week:

Franklin Raines On Foreclosure Fraud AND Mortgage Put-Backs - VIDEO
Story detail from Diana Olick, links, and a cartoon.  And, yes, $1 trillion.

---

From Diana Olick at CNBC (excerpts)

So out of the blue this morning I get a bill for anywhere from $221 billion to $363 billion; it wasn't addressed to me alone, but as a taxpayer I tend to take these things very personally.

The "projected" bill came from the overseer of Fannie Mae and Freddie Mac, the FHFA (Federal Housing Finance Agency), which "released projections of the financial performance of Fannie Mae and Freddie Mac, including potential draws under the Preferred Stock Purchase Agreements with the U.S. Department of the Treasury." (You can read the full release here)...

...So far the Treasury has infused $148 billion to keep Fannie and Freddie afloat; this as their book of business from the height of the housing boom continues to bleed through every band-aid applied. The "projections" released today, "are intended to give policymakers and the public useful snapshots of potential outcomes for the taxpayer support of Fannie Mae and Freddie Mac," writes FHFA Acting Director Edward DeMarco in the release...

...So as we approach election day and as we approach the Administration's promised January deadline for a GSE reform game plan, we get to look at some super scary scenarios of what the continuing mortgage mess is going to cost us all. There is a disclaimer: "The results do not define the full range of possible outcomes. This effort should be interpreted as a sensitivity analysis of future draws to possible house price paths."...



...The Deeper Second Recession assumes restricted access to credit, continued high unemployment and a reverse in the moderate rebound in home construction we saw in 2009. Peak-to-trough decline is 45 percent with the trough in Q1, 2012. From that trough, prices increase 11 percent through 2013. GSE bill: $363 billion.

Continue reading
---

Eventually the bailout bill will be $1 trillion:

CNBC with Robert Shiller
Total Cost To Taxpayers Of Fannie, Freddie Bailout Could Reach $1 Trillion




http://dailybail.com/home/update-fannie-freddie-bailout-could-double-in-size-to-360-bi.html

Logged
citizenx
Member
*****
Offline Offline

Posts: 9,086


« Reply #9 on: October 22, 2010, 06:55:54 AM »

And from the New York Slimes, we get this:

Fannie and Freddie May Need Infusion
By BINYAMIN APPELBAUM
Published: October 21, 2010

WASHINGTON — The federal bailout of Fannie Mae and Freddie Mac may be winding down with relatively little additional cost to taxpayers so long as the economy continues to recover. But if the economy tips back into recession, the bailout could nearly double in size, according to new government projections announced on Thursday.

Add to Portfolio
Federal National Mortgage Assn
 
Federal Home Loan Mortgage Corp
 
Go to your Portfolio »
The troubled mortgage companies are likely to require about $19 billion in additional federal aid over the next three years, according to a projection by the Federal Housing Finance Agency.

If the economy recovers more quickly than expected, the projections show that the companies could need as little as $6 billion in new aid. By contrast, if the economy falls into recession, the companies could need another $124 billion.

The Treasury Department has spent $135 billion on Fannie and Freddie since they were seized by the government in 2008, to cover their losses on soured mortgage loans. The government is propping up the two companies to make sure that money remains available for mortgage loans. Even under the worst case detailed on Thursday by the housing finance agency, the pace of new cash infusions would decline sharply.

continued (for what it's worth):

 http://www.nytimes.com/2010/10/22/business/22fannie.html?hpw
-------------------------------------------------------------------------------------------------------

Could need as little as 6 billion?  Bullshit.  Bullshit in the extreme.

Thank you Bilderberg for your steady stream of effluence you try to pass off as journalism.

Fu#% you, too.

Infusion?

Makes it sound like a cup of fu#%ing tea.

Hey, here's a quick question.  Is the government going to give you a 6 billion dollar "infusion"?

I don't fu#%ing think so.

Trillion dollar "infusion"?

Not unless your  name has bank after it.

Logged
citizenx
Member
*****
Offline Offline

Posts: 9,086


« Reply #10 on: October 22, 2010, 08:21:58 AM »

If you read the backpages, you get closer to the truth though:


Legal/Regulatory
The Mortgage-Backed Securities Mess
October 22, 2010, 10:00 am
Peter J. Henning follows issues involving securities law and white-collar crime for DealBook’s White Collar Watch.

While much of the focus lately has been on problems with home foreclosures, the greater threat to financial firms like Bank of America is likely to come from potential liabilities related to billions of dollars of mortgage-backed securities. The Federal Reserve Bank of New York and others are trying to force banks to buy back problem mortgage loans, and Bank of America has vowed to fight demands to take back loans that were not underwritten properly.

More troublesome than that, the Securities and Exchange Commission and plaintiffs lawyers may start circling Bank of America and other banks that played a large role in the securitization process, possibly pursuing fraud claims in lawsuits that may challenge the truthfulness of disclosures made in peddling the securities.

About White Collar Watch
Peter J. Henning, writing for DealBook’s White Collar Watch, is a commentator on white-collar crime and litigation. A former lawyer at the Securities and Exchange Commission’s enforcement division and then a prosecutor at the Justice Department, he is a professor at the Wayne State University Law School. He is currently working on a book, “The Prosecution and Defense of Public Corruption: The Law & Legal Strategies,” to be published by Oxford University Press.
Mary L. Schapiro, the chairwoman of the S.E.C., said earlier this week that “whenever there are suggestions that there may have been any kinds of issues with respect to disclosure, misrepresentations or omissions, we are always looking at that kind of conduct.” That means disclosures that companies made to their own shareholders will be looked at, as well as what was said about the value of the loans packaged into mortgage-backed securities that the banks sold to various investors.

The mortgage-backed securities market was transformed from a small niche in the bond market into a trillion-dollar sector as companies like Countrywide Financial, later acquired by Bank of America, generated huge numbers of home loans that were quickly packaged and sold to investors to fund even more loans. When the housing market started collapsing in 2007, so too did the value of the securities sold, as more loans went into default and the terms of a number of mortgages were modified to avoid foreclosing on properties.

continued:

http://dealbook.blogs.nytimes.com/2010/10/22/the-mortgage-backed-securities-mess/
---------------------------------------------------------------------------------------------------------

Another trillion dollars worth of worthless derivatives (CDO's) -- that sounds more like reality.



Logged
citizenx
Member
*****
Offline Offline

Posts: 9,086


« Reply #11 on: October 22, 2010, 08:31:25 AM »

So what part of that trillion dollar CDO market is garbage?

Looks like Citi is in even more trouble than B of A:

80% of Citi Mortgages Defective


Bloomberg notes:

Richard M. Bowen, former chief underwriter for Citigroup’s consumer-lending group, said he warned his superiors of concerns that some types of loans in securities didn’t conform with representations and warranties in 2006 and 2007.

“In mid-2006, I discovered that over 60 percent of these mortgages purchased and sold were defective,” Bowen testified on April 7 before the Financial Crisis Inquiry Commission created by Congress. “Defective mortgages increased during 2007 to over 80 percent of production.”


In addition, a reader sent me documents which he says prove that Citi was running foreclosure mills. I will post the documents after I have time to read and digest them.

to read more:

http://www.washingtonsblog.com/2010/10/80-of-citi-mortgages-defective.html
That gives you some idea.
Logged
citizenx
Member
*****
Offline Offline

Posts: 9,086


« Reply #12 on: October 22, 2010, 09:15:39 AM »


Won't somebody think of the children?
Logged
redeux
Member
*****
Offline Offline

Posts: 752


I challenge any NWO member to a fist fight


« Reply #13 on: October 22, 2010, 10:20:35 AM »

I just looked at my security deed and low and behold MERS....... what a f*cking crock of shit....
Logged

Protect your manhood, demand Testosterone..........
agentbluescreen
Member
*****
Offline Offline

Posts: 7,510


« Reply #14 on: October 22, 2010, 11:10:29 AM »

Right, as their Ponzi schemes collapsed last time -- who was recruited (raped) to pay to bill?  All of us.

Same with the collateralized securities that are still in the process of collapse -- begging another huge intervention -- if we let them get away with it again!
-----------------------------------------------------------------------------------------------------------

In that vein:


Thursday, October 21, 2010
Two Front Crisis Of Foreclosure Fraud for Banks - Fraud Committed by Foreclosing on Homeowner Illegally AND Most Investors of Mortgage Securities are DEMANDING Their Money BACK! Looks Like Banks are Getting it From ALL Sides! AAhhh....... Don't cha Just Feel Sorry for Wall Street, Right now As The Walls Come Tumbling DOWN!
 


Bloomberg has an article saying the Wall Streets Banks are Getting it From all Sides!  First the Fraudulent Paperwork of Illegally Foreclosing on Homeowners!  BUT, NOW the BIG story is becoming ALL THE INVESTORS WANTING THEIR MONEY BACK - OUT OF MORTGAGE SECURITIES!  Already Billions Are being Demanded Back from Investors!

Seems to me, we have a situation that can Cause the Walls of Wall Street to come tumbling Down Very Fast!

They are getting Hit from all sides!  Oh..... lets all say together...... aaaahhhhhhh.... Poor Wall Street, don't cha just feel so sorry for them right now, as they are handing out the biggest bonuses ever in the history of Wall Street! (they know the end game is here? getting all they can, out, fast?)

Portion:


Shoddy mortgage lending has led bankers into a two-front war, pitting them against U.S. homeowners challenging the right to foreclose and mortgage-bond investors demanding refunds that could approach $200 billion.


While federal regulators and state attorneys general have focused on flawed foreclosures, a bigger threat may be the cost to buy back faulty loans that banks bundled into securities. JPMorgan Chase & Co., Bank of America Corp., Wells Fargo & Co. and Citigroup Inc. have set aside just $10 billion in reserves to cover future buybacks. Bank of America alone said this week that pending claims jumped 71 percent from a year ago to $12.9 billion of loans.


The biggest risks for banks may be loans packaged into mortgage-backed securities during the housing bubble, of which $1.3 trillion remain. The aggrieved bondholders include government-controlled firms Fannie Mae and Freddie Mac, bond insurers and private investors.

link:

http://sherriequestioningall.blogspot.com/2010/10/two-front-crisis-of-foreclosure-fraud.html
--------------------------------------------------------------------------------------------------

On a side not our budget deficit for the year is estimated to be 1.3 trillion, so if we have to foot right no the bill we are talking about doubling that right now.

To give it some scale perspective.

To put it another way, 1.3 trillion USD divided by 300 million Americans is 4,333.33$ for every man woman and child in the U.S. of A.

That should make it real clear for everyone what we are talking about.

(In addition to the tens of trillions already stolen.)

http://forum.prisonplanet.com/index.php?topic=190147.msg1128353

Treasury Gets 36% Return Buying Toxic Mortgages From Banks in First Year
22 October 2010
, by Christopher Condon (Bloomberg)
http://www.bloomberg.com/news/2010-10-22/ppip-funds-surge-36-on-average-in-first-year-treasury-says.html

Excerpt:

“Returns are not a function of better fundamental data,” said Phlegar of AllianceBernstein.

“It’s largely a function of compression in yield premiums,” he said, meaning buyers are willing to accept a lower return in the current bond market, bringing prices up
.

Excerpt:

A U.S. government program aimed at reviving the mortgage-backed securities market returned more than triple what stocks or bonds gained in the past year.

Dare we say three front war?
Logged
citizenx
Member
*****
Offline Offline

Posts: 9,086


« Reply #15 on: October 22, 2010, 06:56:43 PM »

It sounds like the gov't is helping to create yet another mortgage bubble as you say, AB, but I'm not sure what the scop of it is just yet.  Still, yes, not a good thing: another bubble of toxic mortgage-backed securities.
Logged
citizenx
Member
*****
Offline Offline

Posts: 9,086


« Reply #16 on: October 22, 2010, 08:24:33 PM »

The Market Ticker ® - Commentary on The Capital Markets Posted 2010-10-11 22:05
by Karl Denninger
in Foreclosuregate

The MERS Edifice Quavers....  
And threatens to crumble into dust....

Yes, this is a draft.  But it is coming from a law school's scholarly paper mill - not exactly the sort of place you want to ignore.  A few good cites will set the table for those willing to dig into what's really not that hard to understand...

In the mid-1990s mortgage bankers decided they did not want to pay recording fees for assigning mortgages anymore.11 This decision was driven by securitization—a process of pooling many mortgages into a trust and selling income from the trust to investors on Wall Street. Securitization, also sometimes called structured finance, usually required several successive mortgage assignments to different companies. To avoid paying county recording fees, mortgage bankers formed a plan to create one shell company that would pretend to own all the mortgages in the country—that way, the mortgage bankers would never have to record assignments since the same company would always “own” all the mortgages.12

What do you call an artifice designed to evade the payment of taxes - which these fees are?

They incorporated the shell company in Delaware and called it Mortgage Electronic Registration Systems, Inc.13

Even though not a single state legislature or appellate court had authorized this change in the real property recording, investors interested in subprime and exotic mortgage backed securities were still willing to buy mortgages recorded through this new proxy system.

continued (and I can't recommend this one strongly enough):

 http://market-ticker.org/post=168845

Logged
citizenx
Member
*****
Offline Offline

Posts: 9,086


« Reply #17 on: October 22, 2010, 08:41:26 PM »

Is ForeclosureGate Sloppy Paperwork or Push Button Financial Fraud?
Housing-Market / US Housing
Oct 20, 2010 - 11:38 AM
 
By: Washingtons_Blog

 
Foreclosure Expert Confirms Mortgages Pledged Multiple Times, Not Actually Securitized, Document Problem Is Really a System of "Push Button Fraud"

Yesterday, I showed that mortgages were fraudulently pledged to multiple buyers at the same time. Today, foreclosure expert Neil Garfield (former investment banker, trial lawyer and board member of several financial institutions) confirms this, explains that the loans were not actually securitized, and the whole "sloppy paperwork" excuse is really an attempt to explain away a system of push-button fraud:

The game was to move money under a scheme of deceit and fraud. First sell the bonds and collect the money into a pool. Second take your fees, third take what’s left and get it committed into “loans” (which were in actuality securities) sold to homeowners under the same false pretenses as the bonds were sold to investors. By controlling the flow of funds and documentation, the middlemen were able to sell, pledge and otherwise trade off the flow of receivables several times over — a necessary complexity not only for the profit it generated, but to make it far more difficult for anyone to track the footprints in the sand.

If the loans had actually been securitized, the issue would not arise. They were not securitized. This was a mass illusion or hallucination induced by Wall Street spiking the punch bowl. The gap (second tier yield spread premium) created between the amount of money funded by investors and the amount of money actually deployed into “loans” was so large that it could not be justified as fees. It was profit on sale from the aggregator to the “trust” (special purpose vehicle). It was undisclosed, deceitful and fraudulent.

Thus the “credit enhancement” scenario with tranches, credit default swaps and insurance had to be created so that it appeared that the gap was covered. But that could only work if the parties to those contracts claimed to have the loans. And since multiple parties were making the same claim in these side contracts and guarantees, counter-party agreements etc. the actual documents could not be allowed to appear nor even be created unless and until it was the end of the road in an evidential hearing in court. They used when necessary “copies” that were in fact fabricated (counterfeited) as needed to suit the occasion. You end up with lawyers arriving in court with the “original” note signed in blue (for the desired effect on the Judge) when it was signed in black — but the lawyer didn’t know that. The actual original is either destroyed (see Katherine Porter’s 2007 study) or “lost.” In this case “lost” doesn’t mean really lost. It means that if they really must come up with something they will call an original they will do so.

continued:

http://www.marketoracle.co.uk/Article23644.html
Logged
citizenx
Member
*****
Offline Offline

Posts: 9,086


« Reply #18 on: October 22, 2010, 08:47:12 PM »

NY Times:  Fannie and Freddie may need 6, 19, maybe 123 billion.

My a$$.

Somewhere between 363 billion and one trillion.

--------------------------------------------------------------------------------------------------
Fannie, Freddie May Draw $363 Billion, FHFA Says

By Lorraine Woellert - Oct 22, 2010 9:13 AM GMT+0900 Tweet  (46)LinkedIn Share
Business Exchange Buzz up! Digg Print Email 
Fannie Mae and Freddie Mac may need as much as $363 billion in Treasury Department aid through 2013, the Federal Housing Finance Agency said. Photographer: Andrew Harrer/Bloomberg

 
Oct. 21 (Bloomberg) -- Michael Feder, chief executive officer of Radar Logic Inc., talks about the outlook for housing and foreclosures. Feder says the U.S. needs a "simpler solution" to foreclosures that is "not a moratorium." Feder speaks with Matt Miller on Bloomberg's "Street Smart." 
Fannie Mae and Freddie Mac, the mortgage-finance companies operating under U.S. conservatorship, could draw a total of $363 billion in Treasury Department aid through 2013 if the housing market worsens, the Federal Housing Finance Agency said.

The FHFA, which oversees the government-sponsored entities, offered the estimate today as the worst-case in an analysis modeled on the stress tests conducted on the nation’s biggest banks last year. The actual total cost to taxpayers under the regulator’s most dire scenario would be $259 billion, because almost 30 percent of the funds would come back to Treasury as dividend payments on its holdings of senior preferred stock.

Under the best-case scenario, which assumes a strong near- term recovery in the housing market, the total cost to taxpayers would be $221 billion, or $142 billion after dividends. A middle-ground scenario would require total aid of $238 billion, or $154 billion after dividends. So far the companies have drawn $148 billion and returned $13 billion in dividends to Treasury.

“These projections are intended to give policy makers and the public useful snapshots of potential outcomes for the taxpayer support of Fannie Mae and Freddie Mac,” FHFA Acting Director Edward J. DeMarco said in a statement released with the report. “The results reflect the potential effects of a limited set of hypothetical changes in house prices.”

continued:

http://www.bloomberg.com/news/2010-10-21/fannie-freddie-may-draw-363-billion-fhfa-says-update1-.html


Logged
redeux
Member
*****
Offline Offline

Posts: 752


I challenge any NWO member to a fist fight


« Reply #19 on: October 22, 2010, 09:47:48 PM »

The Market Ticker ® - Commentary on The Capital Markets Posted 2010-10-11 22:05
by Karl Denninger
in Foreclosuregate

The MERS Edifice Quavers....  
And threatens to crumble into dust....

Yes, this is a draft.  But it is coming from a law school's scholarly paper mill - not exactly the sort of place you want to ignore.  A few good cites will set the table for those willing to dig into what's really not that hard to understand...

In the mid-1990s mortgage bankers decided they did not want to pay recording fees for assigning mortgages anymore.11 This decision was driven by securitization—a process of pooling many mortgages into a trust and selling income from the trust to investors on Wall Street. Securitization, also sometimes called structured finance, usually required several successive mortgage assignments to different companies. To avoid paying county recording fees, mortgage bankers formed a plan to create one shell company that would pretend to own all the mortgages in the country—that way, the mortgage bankers would never have to record assignments since the same company would always “own” all the mortgages.12

What do you call an artifice designed to evade the payment of taxes - which these fees are?

They incorporated the shell company in Delaware and called it Mortgage Electronic Registration Systems, Inc.13

Even though not a single state legislature or appellate court had authorized this change in the real property recording, investors interested in subprime and exotic mortgage backed securities were still willing to buy mortgages recorded through this new proxy system.

continued (and I can't recommend this one strongly enough):

 http://market-ticker.org/post=168845



...and who is the White House from Delaware? Joe Gaff-o-matic Biden..... Delaware is a haven from criminal creditors and these jerks aka MERS......
Logged

Protect your manhood, demand Testosterone..........
citizenx
Member
*****
Offline Offline

Posts: 9,086


« Reply #20 on: October 22, 2010, 11:04:01 PM »

Hey banks, buy back these crappy loans

Foreclosure Fiasco

We'd like to return these bad loans, please

By Charles Riley, staff reporterOctober 22, 2010: 5:58 PM ET


NEW YORK (CNNMoney.com) -- The foreclosure document fiasco has already caused a major headache for U.S. banks -- and that headache may soon escalate into a migraine.

But the additional pain isn't coming from the Obama administration or state attorneys general, both of whom have stepped up pressure on the banks. Nor is it coming from individuals who allege their homes were wrongly foreclosed on.

50Email Print CommentIt's coming from institutional investors who bought home loans that had been bundled together by banks and then sold off as Residential Mortgage Backed Securities, or RMBS.

These investors thought they were buying solid investments. But the recent robo-signing debacle shed light on document problems in foreclosures, revealing problems with the underlying paperwork and quality of the loans.

continued:

http://money.cnn.com/2010/10/22/real_estate/repurchase_banks/index.htm?cnn=yes
Logged
citizenx
Member
*****
Offline Offline

Posts: 9,086


« Reply #21 on: October 22, 2010, 11:08:39 PM »

Just watch:  B of A, Citi and Wells are going to bite the big one on this and JPM and GS are going to come off smelling tlike a rose again (thanks to their friends in the admin. and the Fed):

Another Wells Fargo robo-signer

Posted by Colin Barr
October 22, 2010 1:24 pm

Is Wells Fargo's foreclosure process really as sound as the giant bank says?

That's the question raised Friday by a report in ProPublica. The investigative journalism outfit says it has located another Wells (WFC) employee who has admitted to signing foreclosure affidavits without reviewing the case files as required.


Stagecoach yet to be hitched up
The employee, Tamara Savery, twice submitted unverified documents to a Texas bankruptcy court, ProPublica reports. Those weren't the only times she ran afoul of laws obliging affidavit signers to attest to the truthfulness of their claims, the report suggests: she said she "couldn't guesstimate" how often she did so, ProPublica said.

Questions about Wells' practices are swirling because the bank has taken pains to paint itself as the least affected of the big financial firms by the foreclosure-process probes that have sprung up all over the country.

Bank of America (BAC), the biggest U.S. bank, has seen its shares tumble to a 52-week low amid questions about the high level of bad loans on its books and how it has handled foreclosures in the past. JPMorgan Chase (JPM) is widely seen as better run and therefore less exposed than BofA, but CEO Jamie Dimon conceded on the bank's earnings call this month that Chase may have to pay some penalties to settle state inquiries.

continued:

http://finance.fortune.cnn.com/2010/10/22/another-wells-fargo-robo-signer/
--------------------------------------------------------------------------------

Big fish eat little fish (or relatively smaller fish, as the case may be.)

Logged
ekimdrachir
Member
*****
Offline Offline

Posts: 7,147


METATRON ON


WWW
« Reply #22 on: October 22, 2010, 11:22:28 PM »

"There's never been a better time to buy the custom home of your dreams! If you think you can't afford it, think again!" Spouts the radio.
Logged

jofortruth
Member
*****
Offline Offline

Posts: 12,748



WWW
« Reply #23 on: October 23, 2010, 12:10:32 PM »

A MERS eRegistry Kit I found online:
http://www.scribd.com/doc/20956273/MERS-eRegistry-Membership-Kit
Logged

Don't believe me. Look it up yourself!

The Great Deception - Forum/Library - My Research
http://z4.invisionfree.com/The_Great_Deception/index.php?showforum=110
citizenx
Member
*****
Offline Offline

Posts: 9,086


« Reply #24 on: October 23, 2010, 03:34:10 PM »

excerpts:


As Shahien Nasiripour reports:

Just four firms dominate the trustee market for mortgage-backed securities in which the mortgages aren't guaranteed by Uncle Sam: Deutsche Bank, U.S. Bancorp, Bank of New York Mellon, and HSBC serve as trustees for 70.5 percent of all such issuance since 2005, according to Asset-Backed Alert, an industry newsletter and data provider. An additional four firms -- Wells Fargo, Bank of America, JPMorgan Chase, and Citigroup -- control 29.1 percent, Asset-Backed Alert data show.

All told, these eight firms have served as trustees for 99.6 percent of all private-label mortgage-backed securities issued since 2005.





As David Faber notes:
 
The worry centers on the mortgage loan pools created by many of the big banks as they fed the seemingly endless desire for mortgage-backed securities and CDO's (collateralized debt obligations) made from them.


It appears the mortgage content of many of those pools—created when the banks were dominating the mortgage securitization market in 2005, 2006 and 2007—may have been misrepresented. For example, an underwriter may have maintained that 80 percent of the mortgages in the pool were for primary residences when in fact far fewer were for that purpose. Or the underwriter stated that only 10 percent of the pool would be made of of "no-doc" loans—those that include less documentation about the borrower—when in fact the percentage was far higher.

That could be fraud, and if so, the creator of the mortgage pool could be liable. Given that the market for private label RMBS (residential mortgage-backed securities) was $1.5 trillion, the potential liability may be considerable. And while most of the originators of these mortgages are long gone, the securitizers are not.



 

for entire (blog) article (highly recommended and funny!):

http://www.washingtonsblog.com/2010/10/real-danger-in-foreclosure-crisis.html

Logged
citizenx
Member
*****
Offline Offline

Posts: 9,086


« Reply #25 on: October 23, 2010, 04:04:22 PM »

Saturday, October 23, 2010

The Securitization Scam: Foreclosures and the Mortgage Electronic Registration Systems (MERS)
 

Bob Chapman  globalresearch.ca

The foreclosure crisis has set its sights on MERS, the Mortgage Electronic Registration Systems, which files almost all of the foreclosure actions in behalf of lenders. The problem never anticipated by lenders is that the company has no legal standing to do such things. In addition they broke the law by not requiring a notarized document of transfer of title signed by the seller and buyer. That is because they did not own the loans. Only the owner of the loan can file. Thus, many of the titles are now subject to fraudulent conveyance. This means that foreclosure proceedings could be subject to legal challenge. Another question is could the foreclosures done since 2007 be nullified? How could a settlement be arrived at in a few months when there are millions of homeowners involved. The banks, which obviously deliberately broke the laws, will be responsible for fines and settlement with injured parties could cost them more than $10 billion. While this scenario moves forward the banks still are acting like goons and violating laws, to get people out of homes.


The question is who has the loan paper and that is the note-holder. He or they are the only ones with legal standing to request a court to foreclose and evict. That all changed with the coming of MBS, mortgage backed securities. Loans were bundled into tranches or REMIC’s, a vehicle designed to hold the loans for tax purposes. These mortgages were cut into bits and pieces to satisfy the different tastes and needs of investors. During this process the note was not signed over to the bondholders, because the mortgage may have been split into pieces and no one could know which part would default first. Therefore the MBS held the note.


The MERS system was a bridge and repository for these mortgages, a shadow holder owned by lenders and Fanny Mae and Freddie Mac. The system located mortgages and was involved in the altering of mortgages. The upshot was a broken chain of title. When that happens the mortgage note is no longer valid. The borrower does not know who to pay and so pays no one. Then come the foreclosure mills and that led to falsification of documents to assist the lender, which is fraud. These actions expedited foreclosures and evictions and that was all the lenders were interested in.

There is no question a massive fraud took place. It was identified by the title insurance companies who the lenders are trying to blame this criminality on. The result was the banks went around the title insurance companies and used foreclosure mills, when the title companies wouldn’t play ball.


continued:

http://poorrichards-blog.blogspot.com/2010/10/securitization-scam-foreclosures-and.html
Logged
citizenx
Member
*****
Offline Offline

Posts: 9,086


« Reply #26 on: October 24, 2010, 02:14:03 AM »

The Daily Bail
National Debt & Deficit Portal. Bailout News. QE - The New American Bloodsport.

Oct232010

« Felix Salmon Explains Why Lawsuits Are Flying At Banks Who Turned Crap Into Triple AAA (Mortgage Mess TV) »

Video:  Felix Salmon says investment banks face massive legal risk due to the way they built their mortgage bonds.  He explains EXACTLY how banks built these bonds - with lies and cover-ups every step of the way.

This is a very, very good clip.  Great explanation, excellent detail, and it runs only 2 minutes.  Don't skip the last 30 seconds and Salmon's conclusion.

Story background:

80% of Citigroup's mortgages were defective

Chris Whalen Explains Foreclosures, Loan Put Backs & Bank Risk

David Faber: Mortgage Put-Backs Don't Require Fraud Just Inaccuracy

---

Video:  Felix Salmon says investment banks face massive legal risk due to the way they built their mortgage bonds.

I’ve been getting a lot of good feedback about my post yesterday on the way in which just about every major investment bank in the world might have huge legal risk surrounding the way that they built their mortgage bonds. The stock market in general might be relatively sanguine about the mortgage mess, but bank stocks are falling, and I suspect that the worst is yet to come. Certainly the tail risk to the banking industry as a whole is as high as it’s been since TARP was first unveiled.

link to article (with embedded video):

http://dailybail.com/home/felix-salmon-explains-why-lawsuits-are-flying-at-banks-who-t.html

Logged
kerrymti
Member
*****
Offline Offline

Posts: 1,467


The truth will set us free..and..open their eyes.


« Reply #27 on: October 24, 2010, 11:14:57 AM »

Thanks Dig for starting this thread.   Grin

I have been a paralegal working in the 'real estate closing' field for close to ten years.  Our office mainly conducts real estate closings for local Credit Unions.  We also write title insurance for one of the largest title insurance companies in the nation, Mississippi Valley/Old Republic.  I conduct title searches at the local court houses, checking for previous liens on properties as well as checking the 'chain of title'.

For the last five or six years, I have been complaining and worried about the MERS situation.  Here is an example of how this has affected our small operation:  We receive a request from our client to conduct a closing for a member of the credit union.  This member is refinancing a mortgage where they are currently making payments to WAMU (for example), they give us a 'payoff statement' from WAMU.  When I conduct my search, all I find is a mortgage to MERS for First State Bank (for example).  I HAVE NO WAY TO KNOW IF THE MORTGAGE I FIND AT THE COURTHOUSE IS ACTUALLY THE ONE WE ARE PAYING OFF TO WAMU.  We have been forced to 'blindly' accept that the payoff is actually for the mortgage we find at the courthouse. 

In the world before MERS, you would find a mortgage to First State Bank and then an 'assignment' from First State Bank to WAMU, making it easy to track the mortgage and who currently owns it.  This is creating a virtual nightmare for title companies, whose job it is to track the chain of title, including liens. 

Citi mortgages are the worst.  Any time we run across a Citi mortgage we are paying off, I am suspicious and nervous.  They will fax us a payoff statement, we conduct the closing, mail the money (or sometimes wire it) to Citi only to have them mail it back saying it is short by 50 dollars...considering a day of mail to them, a day for their processing and a day mailing back to us, us processing and a day mailing back to them...you've added an additional 5 days of interest to the payoff.  This amount may not seem like alot, but when the mortgage is in the hundreds of thousands of dollars, this can be hundreds of dollars additional money from the borrower, plus overnight fees, etc.  We have, in the past, held out more than is stated on their payoff statement, inform the borrower of this and send the payoff, if it is rejected, we are able to quickly return with the additional money.  If Citi does not reject the payoff, we then return the additional money to the borrower.

I believe this new legislation that is 'coming down the pike' is going to create a situation where no title insurance companies are going to be willing to insure a chain of title.  At the point we are now, we can trace property back to the original land grants from the USA, if this continues, that will no longer be possible, there will be 'breaks in the chain of title'.
Logged
citizenx
Member
*****
Offline Offline

Posts: 9,086


« Reply #28 on: October 24, 2010, 04:20:50 PM »

Saturday, October 23, 2010
Lawsuit Alleges that MERS Owes California a Potential $60-120 Billion in Unpaid Land-Recording Fees


Former hedge fund manager Shah Gilani notes:


In creating MERS, these institutions actually changed the land-title system that this country - for much of its history - has relied upon to determine legal ownership status of land titleholders.

Not only did the lenders sidestep (read that to mean avoid) paying billions of dollars in fees to local governments, they paid themselves from the fees that MERS collected.

MERS is facing class-action lawsuits and civil racketeering suits around the country and their members are being individually named in all these suits. One suit alleges that MERS owes California a potential $60 billion to $120 billion in unpaid land-recording fees.

If suits against MERS and all its members are successful, unpaid recording fees and fines (that can be as much as $10,000 per incident) would make every one of them insolvent.

continued:

http://www.washingtonsblog.com/2010/10/lawsuit-alleges-that-mers-owes.html
Logged
citizenx
Member
*****
Offline Offline

Posts: 9,086


« Reply #29 on: October 24, 2010, 04:25:47 PM »

Oct
 
24
 
08:34
Class Action vs Mortgage Electronic Registration Systems, Gmac, Deutsche Bank, Nation Star, Aurora, Bac, Citi, Us Bank, Lps, Et Al
Tags: ECONOMY
Webmaster's Commentary:
MERS

Mortgage
Electronic
Ripoff
System!

http://whatreallyhappened.com
---------------------------------------------------------------------------------

See Scribd document for actual motion (complaint) filed:

http://www.scribd.com/doc/38654717/Class-Action-vs-Mortgage-Electronic-Registration-Systems-Gmac-Deutsche-Bank-Nation-Star-Aurora-Bac-Citi-Us-Bank-Lps-Et-Al

Logged
jofortruth
Member
*****
Offline Offline

Posts: 12,748



WWW
« Reply #30 on: October 24, 2010, 06:58:34 PM »

I just looked at my security deed and low and behold MERS....... what a f*cking crock of shit....


Watch these videos for more info. Tells about the MERs problem and what you can do if on your Mortgage docs. (See links below video)
http://forum.prisonplanet.com/index.php?topic=190299.0


There are some 60 million Americans with this problem, unfortunately!
Logged

Don't believe me. Look it up yourself!

The Great Deception - Forum/Library - My Research
http://z4.invisionfree.com/The_Great_Deception/index.php?showforum=110
agentbluescreen
Member
*****
Offline Offline

Posts: 7,510


« Reply #31 on: October 24, 2010, 09:29:11 PM »

It sounds like the gov't is helping to create yet another mortgage bubble as you say, AB, but I'm not sure what the scop of it is just yet.  Still, yes, not a good thing: another bubble of toxic mortgage-backed securities.

This is no bubble it's like a bugle call to blow down the walls of Jericho that's going to open up a 6 front battle. It's starting to look more like Mortgagegeddon.

The ironic thing is it's like watching another 9/11 "inside job" going off all over again in slow motion on a colossal scale, all over huge, fraudulent, mass mortgage-kiting scheme.

When this reaches the Supreme Court it's gonna be "Katie bar the door" time...  There's just no possible good outcome.
Logged
citizenx
Member
*****
Offline Offline

Posts: 9,086


« Reply #32 on: October 24, 2010, 10:42:13 PM »

Oh yeah, we are looking at quite the legal and financial mess.  Much larger than it appears (since it doesn't appear in the MSM at all).

Yes, that pretty much sums it up.

Kind of makes you wonder if someone didn't want to destroy our financial system, hence the deregulation going back nearly twenty years ago that created much of this mess -- like the creation of these kited (and evidently largely fraudulent) "derivatives".

These CDO's are still just the tip of the iceberg, though, in terms of these financial WMD's are concerned.  There are still 600 trillion USD in OTC interest rate derivatives waiting to implode.  There will be no barring the door then -- none at all.

(The "good news" about those derivatives is we actually have to start "recovering" before that market will likely tank.)
Logged
kerrymti
Member
*****
Offline Offline

Posts: 1,467


The truth will set us free..and..open their eyes.


« Reply #33 on: October 26, 2010, 09:04:20 PM »

Be aware that just because your mortgage (deed of trust) says MERS does not necessarily mean that yours is lumped into the 'problem' mortgages.  Some of the MERS mortgages were bought by reputable banks and were transferred correctly, but the vast majority were not transferred (i.e. assigned) correctly/legally.
Logged
citizenx
Member
*****
Offline Offline

Posts: 9,086


« Reply #34 on: October 26, 2010, 09:34:27 PM »

True, but the thing is: nobody knows which is which or whether any particular MERS mortage is correct without checking the entire system to make sure it was not transferred multiple times in order to verify that the mortagage holder (at present) is correct.  Hence the chaos at the moment (soon to be made legal by the Demoblicans and Rpubocrats after the phony baloney election cycle is complete.)
Logged
redeux
Member
*****
Offline Offline

Posts: 752


I challenge any NWO member to a fist fight


« Reply #35 on: October 26, 2010, 09:41:42 PM »

Be aware that just because your mortgage (deed of trust) says MERS does not necessarily mean that yours is lumped into the 'problem' mortgages.  Some of the MERS mortgages were bought by reputable banks and were transferred correctly, but the vast majority were not transferred (i.e. assigned) correctly/legally.

Whether the mortgage was used as a derivative has no bearing on the fraudulent nature of these mortgages.......

If the Note says the "at risk lender" and the security instrument says "MERS"... you have a fraudulent mortgage...most states that I have seen thus far do not afford a "Nominee" the "Power of Sale".....MERS cannot act as a fiduciary in regard to the note......
Logged

Protect your manhood, demand Testosterone..........
redeux
Member
*****
Offline Offline

Posts: 752


I challenge any NWO member to a fist fight


« Reply #36 on: October 26, 2010, 09:47:43 PM »

A current class action suit here in Ga. states this:

"MERS lacks the capacity to act as a Trust or Corporate Fiduciary in the State of
Georgia, thereby rendering void the security deeds of the Plaintiff and putative
plaintiffs that named MERS, acting solely as 'nominee' for the Lender and the
Lender's successors and assigns."
Logged

Protect your manhood, demand Testosterone..........
redeux
Member
*****
Offline Offline

Posts: 752


I challenge any NWO member to a fist fight


« Reply #37 on: October 26, 2010, 09:50:46 PM »

Ga. Supreme Court Ruling:


"Finally, because we construe the trial court's grant of partial summary judgment as enjoining the foreclosure sale based solely on the foregoing two grounds, the trial court, on remand, may address issues such as the appropriate relief to be granted against MERS on the default judgment and such as whether MERS, as a nominee for the original lender and its successors, has the power to foreclose on an existing security deed either with or without the participation of the existing note holder."

So even if BOA or whomever is involved the lower court was correct in providing relief because the mortgages are FRAUDULENT......
Logged

Protect your manhood, demand Testosterone..........
redeux
Member
*****
Offline Offline

Posts: 752


I challenge any NWO member to a fist fight


« Reply #38 on: October 26, 2010, 10:25:49 PM »

Earlier cases focused on the inability of MERS to produce a promissory note or assignment establishing that it was entitled to relief, but most courts have considered this a mere procedural defect and continue to look the other way on MERS’ technical lack of standing to sue. The more recent cases, however, are looking at something more serious. If MERS is not the title holder of properties held in its name, the chain of title has been broken, and no one may have standing to sue. In MERS v. Nebraska Department of Banking and Finance, MERS insisted that it had no actionable interest in title, and the court agreed.


Its right there if MERS holds the security instrument and yet is not a "secured creditor" the mortgage is FRAUDULENT.....

Here is the analysis under Neb. Law....

 Section 45-702 {8} states that “[m]ortgage loan means any loan or extension of credit secured by a lien on real property, including a refinancing of a contract of sale or an assumption or refinancing of a prior loan or extension of credit.”   In this case, the parties agree that the inquiry is limited to whether MERS “acquires” mortgage loans under § 45-702(6).   Further, although § 45-703 contains several exemptions to the Act, the parties agree that MERS does not fall under any of the exemptions.


MERS response;

The document also states that “MERS shall at all times comply with the instructions of the beneficial owner of mortgage loans as shown on the MERS® System.”

MERS argues that it does not acquire mortgage loans and is therefore not a mortgage banker under § 45-702(6) because it  only holds legal title to members' mortgages in a nominee capacity and is contractually prohibited from exercising any rights with respect to the mortgages (i.e., foreclosure) without the authorization of the members.   Further, MERS argues that it does not own the promissory notes secured by the mortgages and has no right to payments made on the notes.   MERS explains that it merely “immobilizes the mortgage lien while transfers of the promissory notes and servicing rights continue to occur.”   Brief for appellant at 12.

Here comes some good shit...

The Department argues that MERS, through the assignment of lenders' interests in mortgage loans, indirectly acquires mortgage loans and therefore falls within the scope of the Act.   The Department further asserts that a loan and corresponding mortgage or deed of trust are inextricably intertwined and that, accordingly, the interests acquired by MERS are interests in mortgage loans, making MERS a mortgage banker subject to the requirements of the Act.


The decision was though that MERS is in fact not aquire mortgage loans...... my position is that Note and Deed being "split" makes the mortgage unsecured......

Bellistri v Ocwen Loan Servicing, Mo App.20100309

MERS is named as nominee as beneficiary. MERS is NOT named on the note. This appellate case from Missouri, quoting the Restatement 3rd, simply says that the note was split from the security instrument, and that there is no enforcement mechanism available under the Deed of Trust. Hence, the court concludes, quiet title was entirely appropriate and the only remedy to the situation because once the DOT and note are split they is no way to get them back together.

There are many arguments taking place right now regarding this notion that the Security Deed and Note cannot be split to do so is to destroy hundreds of years of black letter law.........


Consider CARPENTER V. LONGAN, 83 U. S. 271 (1872)

From Justice Swayne

"The note and mortgage are inseparable; the former as essential, the latter as an incident. An assignment of the note carries the mortgage with it, while an assignment of the latter alone is a nullity. [Footnote 3]"

The footnote is

Jackson v. Blodget, 5 Cowan 205; Jackson v. Willard, 4 Johnson 43

If the foreclosure claimant cannot produce the NOTE or a valid chain of custody in the form of valid assignments back to the holder of the NOTE, the case is over for lack of establishing the court's subject matter jurisdiction over the case.

Present physical possession of the NOTE must be established pursuant the fact that if the NOTE is still in existence, and a party not the holder and without a valid assignment traceable in an unbroken chain of valid assignments back to the present holder, is awarded judgment against the mortgagor (you), at some time in the future the present holder of the original wet-ink NOTE could appear and file another lawsuit to enforce the NOTE.
Logged

Protect your manhood, demand Testosterone..........
redeux
Member
*****
Offline Offline

Posts: 752


I challenge any NWO member to a fist fight


« Reply #39 on: October 26, 2010, 10:28:54 PM »

In light of the fact that virtually all promissory notes taken by banks, mortgage companies, etc., were sold at some time after the "closing" for the respective transactions --- without the right in discovery to physically inspect, and photocopy the original wet-ink instrument, (production of the original instrument), meaning that the bank, mortgage company, etc., retained physical possession of the NOTE, or can PROVE a valid assignment of the rights of the holder to enforce the instrument from the holder of the original wet-ink NOTE, standing in a court to enforce the instrument in foreclosure is impossible pursuant to the Uniform Commercial Code. (UCC).
Logged

Protect your manhood, demand Testosterone..........
Pages: [1] 2 3 4 5 6   Go Up
  Print  
 
Jump to:  

Powered by MySQL Powered by PHP Powered by SMF 1.1.18 | SMF © 2013, Simple Machines Valid XHTML 1.0! Valid CSS!